Written answers

Thursday, 16 June 2016

Department of Agriculture, Food and the Marine

Dairy Sector

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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238. To ask the Minister for Agriculture, Food and the Marine if he supports a review of the public intervention instrument and reference threshold levels for butter and skimmed milk powder, as permitted under the Common Agricultural Policy's regulation 1308/2013; if he had discussed this at European Union level; and if he will make a statement on the matter. [16565/16]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Ireland has already raised the question of an increase in intervention prices at EU level. It is clear at this point, however, that there is no prospect of securing the agreement of a qualified majority of member states, or the EU Commission, to such an increase. However, I very much welcome the announcement by Commissioner Phil Hogan of his intention to increase the flat rate ceiling for SMP intervention buying-in up to 350,000 tonnes, following my recent meeting with him. SMP Intervention is key EU support tool for dairy markets and is badly needed in this extended period of downward price volatility in the dairy sector. Intervention helps to put a floor under prices and this extension will be of particular benefit for Irish producers through the peak production period. Other measures agreed at EU level include Aids to Private Storage for Cheese and a targeted direct aid scheme of €13.7 million for Irish farmers, which was matched by national funds.

I am fully aware of the pressures on dairy farmers right now and I am committed to working with all players in the sector to address these issues and ensure that we have a sustainable dairy sector going forward. In this regard I have called a meeting of the Dairy Forum for next Tuesday 21st June with all stakeholders to discuss the relevant issues.

I can assure the deputy that I will continue to engage with the EU Commission and with other Member States to ensure that market support measures are deployed and extended as necessary.

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